Pacific Gas & Electric Holds The Line On Q4 EPS Amid Grid Modernization Push: Details

Pacific Gas & Electric Co. PCG shares are trading lower on Friday. On Thursday, the company reported fourth-quarter results, with an adjusted EPS of $0.31, which was in line with the consensus.

PG&E reported 2024 adjusted EPS of $1.36, up from $1.23 in 2023, aided by higher customer capital investment, as approved in the 2023 General Rate Case final decision, which earns an equity return under the cost of capital proceeding.

Operating cash flow stood at $8.0 billion in 2024, up from $4.7 billion in 2023.

In 2024, non-fuel operating and maintenance (O&M) costs decreased by 4%, surpassing the 2% target. The company has saved over $200 million in non-fuel O&M costs annually for the past three years.

In 2024, the company secured a $15 billion loan guarantee agreement with the U.S. Department of Energy’s Loan Programs Office to fund grid modernization projects, potentially saving customers up to $1 billion on a net present value basis through lower-cost financing.

Outlook: PG&E raised its 2025 adjusted EPS guidance to $1.48 – $1.52 from its previous estimate of $1.47 – $1.51, vs. the consensus estimate of $1.49.

The company targets a dividend payout ratio of around 20% of core earnings by 2028.

PG&E CEO Patti Poppe said, “In 2024, we continued progress in ways that matter to both customers and investors. We delivered energy safely—our system has never been safer, and we are working to make it even safer. We stabilized combined gas and electric bills for residential customers. And we connected more new customers to our grid than we have in decades.”

In a separate release, the company stated that it is planning to support approximately 5.5 gigawatts (GW) of new data center energy demand over the next decade.

Of this, 1.4 GW is in the final design phase and is expected to become operational between 2026 and 2030.

Investors can gain exposure to the stock via Listed Funds Trust TrueShares Eagle Global Renewable Energy Income ETF RNWZ and VanEck Uranium And Nuclear ETF NLR.

Price Action: PCG shares are down 1.86% at $15.56 at the last check Friday.

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